Even though Cardano is up the market cap ranking, adding five percent in the last trading week, there are hints of weakness after losses early today.
From the ADA candlestick arrangement in the daily chart, buyers are technically in control, shaking off the weakness of the second half of last week after racing to retest $0.55.
Even though the trend could favor buyers, and prices could swing even higher in the short term, building on the gains of July 18, the failure for buyers to close above $0.55 may point to structure weakness. Therefore, for the uptrend to resume, ideally, there should be a welcomed close above $0.55. If prices edge lower, ADA should hold above the $0.49 support and the middle BB for buyers to stand a chance from an effort versus results perspective.
The Vasil Hard Fork
Overall, Cardano traders are bullish, expecting more gains in the immediate term.
The protocol plans to activate the Vasil hard fork in the next few days. This upgrade will make the network even more performant. The immediate objective, according to developers, is to enhance scalability, allowing the network to soak in demand by projects expecting on-chain confirmation for execution.
Initially, weeks after the activation of smart contracts after Alonzo, marking the end of Goguen, the launch of the first version of Cardano’s on-chain DEX in SundaeSwap led to trader inconvenience.
However, while swapping delays were protocol-specific, the broader network functioned as intended, and fees remained low. The highly anticipated Vasil hard fork will see more projects deploy on Cardano, adding more demand and thus, supporting ADA prices.
Cardano Price Analysis
From the ADA candlestick arrangement, buyers are confident. Cardano is wavy at spot rates, adding five percent in the last trading week. Since bulls reversed losses of July 20, confirming gains of July 18 in a bullish continuation formation, traders may find entries to buy the dips.
In a bullish breakout formation above the primary support at around $0.49, traders can look to ride the developing momentum as shown by rejection of lower prices on July 23. The immediate target for all ambitious bulls stand at $0.66, the upper range of the $0.21 consolidation traced to early May 2022 highs.
Nonetheless, the uptrend will only be valid if buyers build on the weekend’s gains, sustaining prices above $0.49 and the middle BB. Sharp losses below these support lines may slow down bulls, possibly causing liquidation towards $0.45.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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